Is Monero legal in the UK? The rules in 2026

As of November 2026, Monero is legal to own and use in the UK, and no law bans it. HMRC taxes it like other cryptoassets.^[1] The rules fall on firms instead: UK crypto exchanges must register with the Financial Conduct Authority (FCA) under anti-money-laundering rules, and Kraken doesn’t let UK clients deposit or trade Monero.^[2][3]

Is Monero legal in the UK?

Yes. No UK law bans owning, buying, selling or spending Monero. HMRC’s Cryptoassets Manual says HMRC “does not consider cryptoassets to be currency or money”, but it still taxes your gains on them.^[4][1] The anti-money-laundering rules below apply to firms that exchange cryptoassets or hold them for customers, not to people using their own coins.^[2]

What rules apply to UK crypto exchanges?

Since 10 January 2020, cryptoasset exchange providers and custodian wallet providers (firms that hold coins for customers) have had to register with the FCA under the Money Laundering Regulations 2017.^[2] Kraken’s UK company, for example, is an FCA-registered cryptoasset firm under those regulations.^[3]

The regulations don’t list banned coins. Instead, firms must judge risk, and when they decide whether a situation is high risk, one factor they must take into account is whether “the product or transaction is one which might favour anonymity”. High-risk situations call for enhanced due diligence and closer monitoring.^[5] Monero hides the sender, receiver and amount of every payment by default (see How private is Monero?), so a firm that offers it has to weigh that factor. Our guide to why exchanges delist Monero looks at how rules like this play out.

Since 1 September 2023, UK cryptoasset businesses have also had to follow the travel rule: they must collect, verify and share information about cryptoasset transfers.^[6] When sending to a country that hasn’t adopted the rule, a UK firm must still collect and verify the information, and store it before making the transfer. When a transfer arrives from such a country with missing or incomplete information, the FCA expects the firm to make a risk-based assessment of whether to release the coins to the recipient.^[6]

Can you buy Monero in the UK?

Not on Kraken. As of November 2026, its list of UK restrictions says UK clients “cannot deposit or trade” Monero.^[3] Kraken says its UK company “does not support exchange or custody” of the coin and had to liquidate UK holdings “to comply with the regulatory requirements”. It halted UK withdrawals of Monero, and said it would convert any remaining UK balances to bitcoin on 30 July 2024.^[7] Kraken also says newly verified UK retail accounts have a mandatory 24-hour cooling-off period before they can start trading.^[3]

Exchanges change what they offer, so check that a platform is registered with the FCA, and that Monero is on its own asset list, before you sign up.

How is Monero taxed in the UK?

HMRC says the tax treatment of a token depends on its nature and how it’s used.^[4] If you make a gain when you dispose of Monero, you may need to pay Capital Gains Tax. HMRC says disposing includes:^[1]

• selling it
• exchanging it for a different type of cryptoasset
• using it to pay for goods or services
• giving it to another person, unless it’s a gift to your spouse, civil partner or charity

If your total gains for the tax year (6 April to 5 April) are above the Capital Gains Tax tax-free allowance, you must report them to HMRC and pay the tax. Tokens of the same type are pooled, so your cost is usually an average of what you paid, with special rules for tokens bought on the same day as a sale or within 30 days of one. You can deduct allowable costs such as transaction fees, but not the costs of mining, such as equipment or electricity. If you receive cryptoassets, you may also need to pay other taxes.^[1]

Self Assessment returns have had a cryptoasset section since the 2024 to 2025 tax year. HMRC also warns that exchanges’ transaction reports “will not keep track of your pooled costs”, so you must keep your own records of each transaction. If you need to tell HMRC about unpaid tax on cryptoassets from earlier years, you can use its Cryptoasset Disclosure Service.^[1]

What will exchanges report to HMRC?

The UK applies the Cryptoasset Reporting Framework (CARF), a set of rules under which crypto service providers report on their users. Providers in the UK must collect details of all their users, then report those who are tax resident in the UK or another CARF country, with a summary of their transactions.^[8] The first report covers 1 January to 31 December 2026 and is due by 31 May 2027. HMRC can charge a provider up to £300 per user for failing to report, reporting late or reporting inaccurately.^[8]

What’s changing in 2027?

Crypto firms are moving from registration under the anti-money-laundering rules to full FCA authorisation. The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 come fully into force on 25 October 2027.^[9] The FCA’s application period opened on 30 September 2026 and closes on 28 February 2027.^[10]

Firms registered under the Money Laundering Regulations won’t be converted automatically. They need FCA authorisation, or they must run off their UK cryptoasset business before the new regime starts. The FCA warns that firms which fail to do so could be at risk of carrying on unauthorised business.^[10]

Rules differ a lot from country to country. See our country-by-country guide, or the pages for the EU and the US.